Canfor Announces Production Curtailments

Vancouver, British Columbia, Canada, 08 December 2006 -- Canfor Corporation (TSX: CFP) announced today that it will be taking curtailments at certain wood product operations during the latter part of December as part of its holiday downtime. The impact on production as a result of this curtailment represents approximately 47 million board feet of lumber, 6 million square feet of plywood, and 19 million square feet of oriented strand board (OSB).

In addition to these curtailments, Canfor announced that it would be partially curtailing production at its Tackama plywood operation in Fort Nelson, British Columbia, indefinitely, due to the unfavorable market realities of the high Canadian dollar and depressed plywood prices.

Effective 02 January 2007, Tackama plywood production will move from its current 7-day operating format to a 5-day operating format. It is anticipated that the move will reduce the annual operating capacity by approximately 45 million square feet.

The curtailment will also result in the loss of approximately 80 positions. Canfor has begun the process to work with the union and employee group to minimize the impact on employees.

Canfor is a leading integrated forest products company based in Vancouver, British Columbia, with interests in over 33 facilities in British Columbia, Alberta, and Quebec in Canada, and in Washington, NorthCarolina, and South Carolina in the United States. The company is the largest producer of softwood lumber in Canada. It also produces OSB, plywood, remanufactured lumber products, and specialized wood products. Canfor also owns a 50.1% interest in Canfor Pulp Limited Partnership, which is one of the largest producers of northern softwood kraft pulp in Canada and a leading producer of high performance kraft paper. Canfor shares are traded on the Toronto Stock Exchange (TSX: CFP).